Abstract [en]

The fashion industry is Sweden's largest creative industry and Sweden's fastest export industry. Nevertheless, the fashion industry is one of the most vulnerable and exposed industries, that are also affected by external factors. The consumption has fallen in recent years, and the choice of how fashion companies are to finance themselves can be a significant decision in this easily affected industry.

This study investigates whether there is a difference in the capital structure of listed fashion companies, depending on whether the management holds a large share of equities in the company or not. Furthermore, the study analyses whether there is a correlation between the company's debt-to-equity ratio and the management's ownership.

The study is based on a quantitative study, analyzing the Swedish listed companies; Hennes & Mauritz, KappAhl, MQ Holding, Venue Retail Group, RNB Retail and Brands and Odd Molly International, in order to read the link between management and debt-to-equity ratios. The survey is based on the fashion companies' annual reports, to provide information about the sources of funding. As well as to identify how many of the people in the company's board and management that hold shares in the company.

The result shows that a majority of the Swedish listed companies holds a capital structure that largely consists of equity, and a small portion of liabilities. A majority also has a management team where more than half of them also own shares in the company.